Cash flow is supporting the market's upward trend.

Người Đưa Tin•14/07/2023

The market started strongly and gradually diverged towards the end of the session due to increased selling pressure, but liquidity remained high, exceeding 20,000 billion VND across all three exchanges.

At the close of trading on July 14th, the VN-Index rose 2.98 points, or 0.26%, to 1,168 points. Across the entire exchange, there were 220 gainers, 192 losers, and 89 stocks that remained unchanged.

The HNX-Index rose 0.22 points, or 0.1%, to 230.19 points. Across the entire exchange, there were 79 gainers, 83 losers, and 70 stocks unchanged. The UPCoM-Index increased 0.08 points to 86.29 points. The VN30 basket alone recorded 19 gainers.

The total trading value across the entire market reached VND 23,468 billion, a 34% increase compared to the previous session. Of this, the trading value on the HoSE exchange alone increased by 42% to VND 20,878 billion. Within the VN30 group, investors traded VND 8,532 billion worth of shares.

Investment analysis

VCBS Securities: Looking at the hourly chart, both MACD and RSI indicators are still in high territory, suggesting a high probability that the market may still experience significant volatility.

Given the current developments, if the VN-Index continues to trade in a mixed and consolidating manner and breaks above the 1,170 point level, the market will continue to move towards the 1,200 – 1,210 area, corresponding to the 0.786 mark on the scale.

Phu Hung Securities: From a technical perspective, the VN-Index recorded its sixth consecutive day of gains. Trading volume increased above the 10- and 20-day moving averages, implying active capital flow. Furthermore, the index maintained its closing price above the MA5, along with the cluster of MA5, 10, and 20 showing positive divergence, indicating that the recovery trend is continuing.

Overall, the market is maintaining a short-term recovery trend after the July 14th rally. Therefore, investors can continue to pursue short-term trading positions, prioritizing stocks with strong fundamentals, projected Q2 earnings growth, and attracting significant capital inflows.

Rong Viet Securities: Despite significant fluctuations during the session, the market continued to be supported and maintained its upward trend, with many sectors showing gains. Overall, capital flows are still actively supporting the market's upward movement. With this momentum, further gains can still be expected in the near future, but the pace will be slow and characterized by supply and demand competition.

Therefore, investors still need to observe market developments to assess the strength of capital flows. Currently, it is possible to hold and exploit short-term opportunities in stocks showing good technical signals from consolidation bases. However, it is still advisable to consider taking profits or reducing holdings in stocks that have risen rapidly to resistance levels or are under significant selling pressure from resistance levels to balance the portfolio.

Stock market news brief

- Cooling US inflation has led investors to expect the Fed to stop raising interest rates, thus weakening the USD against a range of major currencies. At the start of trading on July 13th, the Dollar Index – which measures the strength of the greenback against a basket of major world currencies – fell to 100.47 points, its lowest level since April 2022.

The euro reached a 15-month high against the US dollar on the morning of July 14th, with one euro exchanging for 1.11 USD. The yen also appreciated 0.3% against the US dollar, rising to 138 JPY per USD. This is the strongest level for the Japanese currency in 5 months. Over the past 5 sessions, the yen has risen 4.8%.

- The Hanoi Stock Exchange (HNX) announced the completion of phase 1 of its private bond trading system. In June of this year, the system completed testing with members and the Vietnam Securities Depository (VSD) and is now fully prepared for official operation. HNX stated that the system allows members to connect and submit orders, supporting both electronic and conventional negotiated orders (transaction reporting).

The system allows for the exchange of transaction and custody information with the VSD system. It also allows for searching information on order books, bond information, and transaction statistics. A representative from HNX also stated that the private bond trading system contributes to boosting market liquidity .

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